tv Nightly Business Report PBS August 5, 2016 7:00pm-7:31pm PDT
this is nightly business report with tyler matheson and sue here. >> job machine. the economy created a lot of jobs last month, sending stocks to a record. but a near term rate hike may not be a done deal yet. >> bristol myers squib shares plunged today, wiping out billions in market value as a high profile cancer drag failed. meet the electrician who started his own business and is now advising other entrepreneurs to become d more on nightly business report for friday, august 5th. >> good evening, everyone. the s&p 500 and the nasdaq closed at all time highs and for that, you can thank a blowout
jobs report. that both exceeded expectations and eased fears of a labor market and economic slowdown. the dow jones industrial average soared 191 points to 18,543. not a rory, but the records were nasdaq up 54 and s&p 500, which gained 18. here are the numbers that sparked the rally. employers added 255,000 jobs, much better than the 179,000 economists expected the jobless rate held steady at 4.9% as more americans looked for work and wages picked up. we have two reporter tonight, hampton pearson on the best two-month stretch of hiring this year, but we begin bob pisani. >> it's been a broad rally. the s&p mid cap and small cap indices are at historic highs.
reme we didn't have far to go in the first place. the s&p 500 was never more than about 1% from an historic high in the past month, so in addition to the rally in a major indices, the rally is showing signs of classic rotation. in the last several week, technology and bio tech have been big market leaders. so names like microsoft have been str time, prior market leaders like utilities and telecom and consumer staples, they've been lagging. why the move up? today's job report is the immediate catalyst, but the rall di didn't start this morning. over hav okay. crude oil, which gave everyone a scare a week ago, is showing stability around $41 and third, there's a lot more talk of fiscal stimulus, not just monetary in the uk, europe and
the u.s. at the new york stock exchange. >> for a second straight month, american employers d blockbuster job growth. 255,000 new workers added in july with june revised upward to 292,000. >> it sukts the econom more. >> more part time work rs found full time jo. hires ses led overall hospitality industry, up 45,000 and health care with 43,000 new hire. m at face virtual, this is a very good jobs report. >> the only negative sector, mining. losing a. the employment falling by
220,000 since the industry peaked two years ago. with job growth for the las three months averaging 190,000 per month, l it should be enough, if nothing goes wrong, s raising r september and again in december. >> the strong jobs rf sets concerns about overall weak economic growth and the brexit fallout on the a for nightly business report, i'm hampton pearson in washington. and joining us now for more on todayt is good to see you. here. rig word.for having m it was hard to find bad news. >> there were also some revisions as well. were the worries of earlier this
year that perhaps, we were headed towards another economic downturn? not well founded. >> after this month's report, last month's report and the revisions in both to earlier months, really looks like may was the an ration. when job creation basically came to a standstill. we got conn that there was strong forward momentum because jobs were created. we also found that we're not pushing as hard on resource slack because more than 400,000 people came back into the labor market and we got a pick up in average hourly earnings, so that implies that income's being created and it will be spent to nitpick here at all. but the growth in the construction and manufacturing sector was much smaller than it was in hospitality and ic
this is a political year. i can well imagine that critics of this report will say we replaced those goo manufacturing jobs with jobs at hardees and wendy's. what do you say to that? >> don't challenge an economist to npick because they can certainly do that. this is another chance we're creating jobs. they're not all good and we have some real challenges. moreover, we're starting the participation rate went up a tenth, but it's still lo and there's another worrisome thing about this employment report. if you thi over the last year, we've got about 1.7% increase in payroll employment. that's probably at the pace of real gdp growth. that means we've got no
productivity over the last year. report. the fed breathes a sigh of relief because the gains and payrolls suggest that there is a base for conti. i it validated something janet yellen has been talking about for a long time. lab ma hot, it can bring people back into the labor market. that 400,000 increases in particip and they have a runway because average earne only 2.6% year on. and some of that cost pressures are off set by lower . i think the fed takes this number and validates the case for policy in 2016. numr this strong, before tt tighten, but
more like lie, they'll go once in december. >> thank you very much. vince reinhardt. >> bristol myers squibb made a risky bet and lost. one of the company's most promising and best-selling cancer treatments failed in a trial for patients with the most common form of newly diagnosed lung cancer. bristol wanted this therapy to broaden oud and used a risky research strategy. that sent shares plumeting 16%, wiping out about $20 billion of bristol's market value, but this setback may not be as bad as it seem >> the save three trial failure is a blow to bristol myers squib and patients. still, some say things are aren't hopeless. >> i think bristol's down a little much. you would believe that the story today in long cancer for this
particular drug from bristol myers, would never again raise its head in lung cancer. that's to say there would be no hope for bristol myers to be in lung cancer in the future and my sense is that's probably incorrect. >> news was a win for merck, who's competing drug succeed ed in a son s w shooting for a home run. trying to use an already successful cancer drug the to take on lung cancer. one of the highest unmet needs of all cancers and at least one analysts estimates the market at $12 billion. it's also the most common cause of all cancer deaths. according to the national cancer institute, so bristol myers went for the broadest trial possible with a bigger risk of failure. >> i think they would have similar outcomes. the trial in lung cancer . the reason for that is simple. the drugs are extraordinarily
similar. almost identical. you would provide a high probability that bristol's success under that scenario would be possible. >> some traders urge investors not to give upton drug makers so quickly. so stock is totally overreacting short-term, this is still a very impressive growth story and it's now on sale, get a nice yield. i think by the way, you could own merck. you want to own them both. >> they're still testing in convention with the drug to type of s lung ca therapy could be a powerful weapon in future battle against lung cancer. >> it's been our view that combination therapy and lung canker will be the therapy of the fuchl and we're not quite her today. merck has some trials, but they're earlier in development. my sense is the markete d in fa.
bristol seems to be in the lead ther >> the trade deficit rose to a ten-month high in june driven by a big rise in imports of oil and chinese goods, but exports edged up slightly. marks the third straight political topic, republican nominee donald trump today named his neec john harwood joins us from washington. advisers, who's in and who isn't? >> well, first of all, it's an all male team. it diverse. sec, it is not the a team of republican presidential economi advisers. but it does share his concern about trade. one of the members, for example, peter navarro of uc irvine, an economist who's talked a lot
about the proble societ with international trade deals. you've got people like john paulson, harold hamm, steve moore, the conservative donald trump and have more meat on the policy bones, which trump is not yet provided in full detail. >> what do we know, you know, because he's going to give this economic policy speech on monday. he certainly has talke a lot about trade and jobs, but what can we pecht and do we know ou positions he's going to put forward on the economy? >> not in detail. but i think that we can expect he'll modify his when you look at what donald trump rolled out last year, it was a gar began cut. 15% rate of business income.
zero percent elimination of estate tax. now, his advisers have acknowledged that needs to shrink and we expect in the speech he's going to narrow it somewhat. so, maybe larry kudlow for example has said maybe it will be a $3 trillion addition to the deficit deficit. >> we'll know more on monday. still ahead, full time gamers, but don't just play those video games. create them. because that's what could land
the pokemon go craze is the gaming.vidence in t that means demand for designers, coders, is more intense than ever. kate r in salt lake 14-year-old navia isn't spending her summer playing sports or hitting the beach. guys at school, they ke vi would be like, no way, you play that's the reason why i lot of girls don't go into games. >> she is part of girls make games, a summer camp that's trying to introduce more girls to opportunities in an industr males. over the past three summers, the camp has taught more than 800 girls the fundamentals of programming and design. >> at first, i was like no idea how to code. like what is coding?
but like after attending girls make games, i'm pretty confident in my coding. >> during the camp, girls get to -- industry experts and get them published. for the founder, it's l the mist women are interesting if video games, as well as to foster female talent that companies are now seeking. >> they want a diverse workforce. they want more ideas and more voices. and this is how they're going to gt it. gl these girls will be glad they got a head start in an industry that's booming. the global gaming industry is poised to hit $90 bill by 2020 according to pcc and experts within the industry say years.uld grow that growth is the reason why some companies like wild works are expand ae electronic arts. >> right now, we're looking for engineers or programmers who
have a background in the gaming ove 120, wild works is also lookinging for game designers, artists and community managers. and since the primary audience for their flag ship game animal .am is girl, they'd like to hir because they bring a perspective, a variety, an experience, especially as we make games that resognate more with girls than with boys. >> emily vincent is new to the industry and feels optimistic about its outlook. >> you can see a pro culture going on, but i think women are getting more and more involved. ashe and be accepaccept >> how their eyes light up when they talk about their games and when they say things like, i had w they' aking a game going to end up making an i'm very excited for that. >> i'm kate rogers, salt lake city. amazon's first branded
delivery jet debut and that's where we begin tonight's mae compa unveiled its first of 40 planes. amazon will lease 40 planes from atlas air and atsg over the next two yes rose a fraction to 765.98. american airlines gives a pay raise to 30,000 employees. they they reached an agreement with the labor union o receive a raise of 15 to 55%. shares were up mor. apollo global management reportedly in talks now to buy the cloud computing company, rack space. according to reuters, a deal could be worth more than $3.5 shares up 10% on the news to
29.27. berke hathaway way saw its profits rise 25%. the results were helped by an improvement in insurance underwriting precision cast part, but operating results did hours trading, they closed the regular session up about 1.5% and no, you're n $218.10. this week's markete t to int it's always good to ta let's get right to your stock pibs. first win mcdermott. why do you like it? >> first of all, it's one of the larger offshore drilling companies thand do it from engineering to the construction of the facilities. they're very, very cheap and
trading at less than w the accountants say they're worth and they have a backlog bigger than the revenues last year, so in spite of the price of oil, they seem to be holding up well. zpl talk about front line, they make tanke the largest tanker oil tanker company in the world. there's a lot of oil in surplus today and that's floating around, actually. in lot of these tankers, but they restructured themselves 2012. the low cost in terms of tankers. they have good earnings and you're gety forever, but for now, the afford to pay you a 20% yield. >> and brandy wine reality trust. you say they're diversifieded and that's one of the reasons why you like i they're not just in commercial or retail space. they have all of those. and they also have the whole sneer of things from the
planning to the actual management. and they focus on just a few really, really high-end areas like washington, d.c. and austin. and so, they're doing a good job there. you're getting about a 4% yield and their earnings have been coming in well. a well run company and we think it has good prospects. >> quick thought on the future of the market on this day that the s&p and nasdaq set records. >> well, we still see there's an upward pat a earn. after the brexit setback we had. stocks h a lot of the pundits are nervous about the market at these levels and we try to measure risks. >> they have a modest approach to t now. maybe 550, 55% in stocks. one of the stoc is they been ignored for a long time and can run for quite a bit of time. zpl have a great weekend.
nice to see you again. barry james with james investment research. coming up, want to be b your own boss? an electrician is teaching others how to run better businesses. here's a look at what to watch next week. on tuesday, disney reports its earnings and investors will be paying atteno what the company says about cord cutting. on thursday, the american consumer will be in focus when macy's kohl's and nordstrom release results and on friday, producer prices are due out. that's what to watch for next week. what does an electrician
know b about running a company? some, quite a bit. others, not so much. that's why a new jersey electrician who said there got to be a better way then figured it out, got the bright idea to share his business management knowledge. for a , h helping others create more jobs than he could ever create on his own. zble that's the big de mike can people. and no wonder.e became a full te electrician. three years later, he and a partner started gold medal electrical contracti in central new jersey. they worked long hours. .id everyt >> we got super -- that my party ner came to me one morning and in 2004 after 11 years, it was either unplog the business or find a better way. they investe
to learn how to actual run a serious business. >> we spent over $800,000 on training very best we could find. >> they started reading. they went to disney to learn about culture. zappos to become more efficient. >> everything is marketing and market is everything. >> the sim of tweets helped turn their lives around. >> i did some study, well, yellow is the first color the eye sees. yellow trucks. nobody has yellow trucks. people were telling us, i see you everywhere. i was like, everywhere? we have three trucks. okay, we're on t in a few years, gold medal added plumbing, heating and cooling services. now with 145 trucks and 190 employees, gold medal is on track to hit $32 million in sales this year. he's only in the office about two or three times a week now,
but he's still busy because other service company owners started asking how he did it. that's when he realized his knowledge, experience, might be more valuable to him even than it is to him. >> nobody's really stepping in and serving these people, so i said why don't we go out there and just change lives for anybody and any type of service business. >> it was the germ of what would co . phone calls and facebook posts. year in, another marketing change, a new name. ceo warrior. annual sales, more tha harry became a warrior three s broer t and take over the maryland plumbing business th he signed up for a four-day >> we were pretty average at that point and we said, you know
what, we don't want to be a year, he hosts these events that pay about $7500've. he later upgraded. that cost $36,000, but gets you full time access to the business improvem. looks inside gold medal. even a taste of martial arts, a long time passion. there are about 95 fast trackers like corbett. in three year, his business has gone from 23 employees to 30. revenues up from less than 4 million a year to more than 4.5. >> we'll really healthy as a company and positioned to have some great growth here moving forward. zpl that'srewiring mike likes. >> why do i exist on this planet and it's not to be an electrician. it was nev to do that. i knew there was a bigger part
gwen: donald trump stumbles. hillary clinton's bounce. but it's just august, right? tonight on "washington week." >> donald trump is not qualified to be president and he is temperamently unfit to be commander in chief. >> we're running against a rigged system and against a very dishonest media the >> i think the republican nominee is unfit to run as president. >> barack obama knows something about being woefully unprepared to be president of the united states the gwen: donald trump under fire. feuding with gold star parents, with house speaker paul ryan and generally pan riking many republicans who have already in -- endorsed him. >> improper it is to ever